Monday, June 2, 2014

Watch Out For Foreclosure Traps

Real estate has so many surprises for the first time investor it is difficult to describe them all in one article although I will attempt to give some insight into a different investment opportunity today. There are in real estate what is known as real estate owned REO lists and these can provide a investor with absolutely amazing opportunities and the returns from these type of investments can be very lucrative. Just be very aware of fraudulent schemes where people offer you deals which does not exist.
There are many companies who claim to sell reo lists online, but a large portion of the properties on these lists either do not exist or are in terrible shape and therefore do your homework carefully before committing yourself. Do all in your power to gain as much information as possible about the company with whom you plan to do business and find out what experiences others in the business had with these companies. Although these references may not be completely foolproof at least they are better than nothing.
 Do not think that it cannot happen to you because the fact is these con artist actually make a living out of their dishonest dealings which signifies that a substantial amount of people are actually taken in by these people. It may the possible to learn something from the comments about these businesses online so do a Google search you never know what you may be able to learn in this way.  Where possible check out whether any relationship exist between the people that gave you the reference and the business.
Only agree to the deal if the purchases price can be held by a reliable third party like a lawyer until the deal has been satisfactorily concluded, like in an escrow arrangement. Any companies who are unwilling to do business in this way are most likely busy to deal crookedly. Simply refuse to get involved in a business transaction with such a business because the chances are very good that they are out to try and deceive you and if that is the case you can lose a lot of money, so beware, do not allow this to happen.
You should carefully enquire as to exactly what value such a company offer you as the customer and ask for a breakdown of exactly what the fees they charge are for and if there are any grey areas, watch out since the likelihood are strong that they are hiding something, especially when they cannot give a reasonable explanation why they charge that amount. Try determining how long the homes are on the REO list, because the longer such a home is on such list the more likely are that property to be vandalized.
Real estate has so many surprises for the first time investor it is difficult to describe them all in one article although I will attempt to give some insight into a different investment opportunity today. There are in real estate what is known as real estate owned REO lists and these can provide a investor with absolutely amazing opportunities and the returns from these type of investments can be very lucrative. Just be very aware of fraudulent schemes where people offer you deals which does not exist.
There are many companies who claim to sell reo lists online, but a large portion of the properties on these lists either do not exist or are in terrible shape and therefore do your homework carefully before committing yourself. Do all in your power to gain as much information as possible about the company with whom you plan to do business and find out what experiences others in the business had with these companies. Although these references may not be completely foolproof at least they are better than nothing.
 Do not think that it cannot happen to you because the fact is these con artist actually make a living out of their dishonest dealings which signifies that a substantial amount of people are actually taken in by these people. It may the possible to learn something from the comments about these businesses online so do a Google search you never know what you may be able to learn in this way.  Where possible check out whether any relationship exist between the people that gave you the reference and the business.
Only agree to the deal if the purchases price can be held by a reliable third party like a lawyer until the deal has been satisfactorily concluded, like in an escrow arrangement. Any companies who are unwilling to do business in this way are most likely busy to deal crookedly. Simply refuse to get involved in a business transaction with such a business because the chances are very good that they are out to try and deceive you and if that is the case you can lose a lot of money, so beware, do not allow this to happen.
You should carefully enquire as to exactly what value such a company offer you as the customer and ask for a breakdown of exactly what the fees they charge are for and if there are any grey areas, watch out since the likelihood are strong that they are hiding something, especially when they cannot give a reasonable explanation why they charge that amount. Try determining how long the homes are on the REO list, because the longer such a home is on such list the more likely are that property to be vandalized.